A Medical Device Daily

OTN (South San Francisco, California), a physician services company and a large distributor of products and services to the community physician market, reported that it has completed a refinancing of its revolving credit facility with a $300 million revolving loan agreement arranged by Wells Fargo Foothill, part of Wells Fargo & Co.

The company said it used the initial proceeds to refinance its existing revolving credit facility and plans to use subsequent proceeds for operating capital and to fund its strategic growth.

“This new agreement not only bolsters our financial position but also enhances our ability to compete for and win new customers and deliver even greater value to physicians who practice in the community-based treatment setting,” said John Amos, president/CEO of OTN.

The $300 million revolving loan from Wells Fargo Foothill may be expanded to $350 million and may be syndicated. It is for a term of 36 months.

OTN, a One Equity Partners portfolio company, provides customized solutions, including technology, pharmaceuticals, supportive care products and medical/surgical supplies, to physicians who practice in the community-based treatment setting.

Health Discovery (HDC; Savannah, Georgia) reported that it has closed an equity investment totaling $2.1 million with a financial institution and other accredited investors.

The company also reported that a total of about $2.1 million of its previously issued secured debt will be converted into equity.

“The combination of new cash proceeds and the conversion of this debt results in an increased equity base of about $4.2 million for HDC,” said Stephen Barnhill, MD, HDC’s CEO/chairman. Our strengthened financial position allows us to focus on executing a business plan that features more biomarker discoveries, licensing and development opportunities, and continued enhancement and protection of our valuable patent estate.”

HDC is involved in the field of pattern recognition technology. The company said its SVM and other pattern recognition tools have application potential in commercial markets such as radiology, Internet search and spam, homeland security, financial futures, and other areas where analysis of large volumes of complex data is required.